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The value of the coveted gold bars sold at Costco stores last year has increased to historic levels, FOX Business reported on Thursday (September 4).
The one-ounce fine gold bar was sold for $2,495 in 2024 and is now reportedly valued at $3,577, a 42% increase of more than $1,000. Americans typically keep hold of their gold whenever they have concerns about the economy, so experts believe the increased value is due to inflation concerns, geopolitical tension and increased bets on Federal Reserve rate cuts.
“With two wars ongoing, trade tensions, U.S. debt concerns and fears over [Federal Reserve] independence, gold’s traditional ‘fear hedge’ role remains strong,” said Jon Ulin, a certified financial planner, via CNBC. “It’s beating bonds at providing portfolio safety.”
Buyers should, however, be aware that gain isn't all yours to keep as the spot price is just a benchmark, not a guarantee and many dealers will offer 5% to 10% less, according to Ulin, who also noted that the Costco bars are less valuable than other forms of gold.
“Most buyers will likely melt the bar down for resale, so whether it’s still in its original Costco packaging with the certificate doesn’t make a huge difference,” he said.
Additionally, selling gold for gain will still result in a tax penalty. Costco began selling the coveted gold bars in 2023, but saw a spike in demand in May 2024, forcing the wholesale giant to limit purchases of up to two bars per customer every 24 hours.